Market in which bonds are traded over-the-counter than in an organized exchange is classified as__________?

A: Organized markets

B: Trade markets

C: Counter markets

D: Bond markets

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Bond markets

Coupon payment of bond which is fixed at time of issuance____________?

A: Remains same

B: Becomes stable

C: Becomes change

D: Becomes low

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Remains same

Coupon payment is calculated with help of interest rate, then this rate considers as________?

A: Payment interest

B: Par interest

C: Coupon interest

D: Yearly interest rate

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Coupon interest

An effect of interest rate risk and investment risk on a bonds yield is classified as_________?

A: Reinvestment premium

B: Investment risk premium

C: Maturity risk premium

D: Defaulters premium

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Maturity risk premium

Yield of interest rate which is below than coupon rate, this yield is classified as_________?

A: Yield to maturity

B: Yield to call

C: Yield to earning

D: Yield to investors

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Yield to call

If market interest rate falls below coupon rate then bond will be sold__________?

A: Below its par value

B: Above its par value

C: Equal to return rate

D: Seasoned price

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Above its par value

Rate of return (in percentages) consists of___________?

A: Capital gain yield interest yield

B: Return yield + stable yield

C: Return yield + unstable yield

D: Par value + market value

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Capital gain yield interest yield

Type of bonds that are issued by foreign governments or foreign corporations are classified as__________?

A: Zero risk bonds

B: Zero bonds

C: Foreign bonds

D: Government bonds

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Foreign bonds

If market interest rate rises above coupon rate, then bond will be sold_____________?

A: Equal to return rate

B: Seasoned price

C: Below its par value

D: Above its par value

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Below its par value

An interest rate which is used in calculation of cash flows of bonds is called______________?

A: Required rate of redemption

B: Required rate of earning

C: Required rate of return

D: Required option

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Required rate of return

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